Cross-border VAT refunds for EU businesses

Most businesses who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are nevertheless entitled to deduct that VAT (Articles 170-171a VAT Directive).This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.

How to get a VAT refundTo avoid potential language problems, claimants send an electronic refund claim to their own national tax authorities – who then forward it to the EU country where the claimant incurred the VAT (once they have confirmed the claimant's identity and VAT identification number, and the validity of their claim).

If the tax authorities in the EU country where they incurred the VAT are late in making the refund, claimants are paid interest.

These documents have been endorsed by national tax authorities of the EU countries in the Standing Committee on Administrative Cooperation and are available in English only.They are intended as guides only – for full, up-to-date details of the rules, contact the relevant national tax authorities.

VAT refunds for non-EU businesses

Businesses not based in the European Union who incur VAT in connection with their activities in an EU country where they do not habitually supply goods/services (and so are not required to register for VAT) are entitled to deduct that VAT.This ‘deduction’ is made by means of a refund from the EU country where they paid the VAT.

How to get a VAT refundClaimants must send an application to the national tax authorities in the EU country where they incurred the VAT – see VAT refunds - country guide.